ABL Pays 120% dividend despite 27% profit drop

MG News | October 23, 2025 at 01:23 PM GMT+05:00
October 23, 2025 (MLN): Allied Bank Limited (PSX: ABL) has reported its financial results for the nine months ended September 30, 2025, posting a profit after tax (PAT) of Rs26.81 billion, marking a 26.54% decline from Rs36.49 billion recorded in the same period last year (SPLY).
The earnings per
share (EPS) stood at Rs23.41, down from Rs31.87 in SPLY, reflecting the decline
in profitability.
Despite lower
earnings, the Board of Directors declared a third interim cash dividend of Rs4.00
per share (40%) for the quarter ended September 30, 2025.
This brings the cumulative
payout for the nine months to 120% (Rs12.00 per share), including two interim
dividends of 40% each already paid in earlier quarters.
The bank’s mark-up/return/interest
earned dropped 23.85% to Rs221.83bn from Rs291.32bn, mainly showing lower
yields amid a declining interest rate environment.
Meanwhile, mark-up/return/interest
expensed also fell 28.81% to Rs143.15bn from Rs201.07bn, resulting in a net
mark-up income of Rs78.68bn, down 12.82% year-on-year.
On the
non-mark-up side, total non-mark-up/interest income rose 7.98% to Rs23.17bn
from Rs21.46bn, showing resilience in fee-based revenues.
Fee and
commission income climbed 19.77% to Rs13.79bn, supported by improved digital
banking and card-based transactions.
However, dividend
income and foreign exchange income declined 15.29% and 18.73%, respectively, to
Rs1.93bn and Rs4.43bn.
In contrast, gain
on securities surged 88.49% to Rs2.55bn, showing favorable investment
revaluations, while other income dropped sharply by 45.43% to Rs470.26m.
Consequently, total
income amounted to Rs101.85bn, showing an 8.82% decline compared to Rs111.70bn
last year.
Operating
expenses increased significantly by 16.00% to Rs49.05bn, mainly due to
inflationary cost pressures, technology investments, and network expansion.
Workers’ welfare
fund declined 21.03% to Rs1.13bn, while other charges grew 35.31% to Rs299.55m.
Overall, total
non-mark-up/interest expenses rose 14.89% to Rs50.47bn from Rs43.93bn,
tightening operating margins.
The bank’s profit
before credit loss allowance fell 23.98% to Rs51.92bn from Rs68.30bn last year.
Meanwhile, credit
loss allowance and write-offs jumped 45.12% to Rs4.30bn, signaling higher
provisioning in anticipation of potential stress in the loan book.
After
provisions, profit before taxation (PBT) stood at Rs56.22bn, down 21.11% from Rs71.26bn
in SPLY.
Taxation expense
decreased 15.40% to Rs29.41bn, showing in a profit after taxation of Rs26.81bn,
marking a 26.55% decline from Rs36.49bn recorded last year.
STATEMENT OF PROFIT OR LOSS FOR THE NINE MONTH ENDED SEPTEMBER 30, 2025
(Rs.000) |
|||
Description |
9MFY25 |
9MFY24 |
Change% |
Mark-up
/ return / interest earned |
221,828,952 |
291,323,188 |
-23.85% |
Mark-up
/ return / interest expensed |
143,146,855 |
201,073,979 |
-28.81% |
Net
mark-up / interest income |
78,682,097 |
90,249,209 |
-12.82% |
Fee and
commission income |
13,785,818 |
11,510,031 |
19.77% |
Dividend
income |
1,929,432 |
2,277,653 |
-15.29% |
Foreign
exchange income |
4,431,549 |
5,452,961 |
-18.73% |
Gain on
securities - net |
2,549,570 |
1,352,662 |
88.49% |
Other
income |
470,264 |
861,732 |
-45.43% |
Total
non mark-up / interest income |
23,166,633 |
21,455,039 |
7.98% |
Total income |
101,848,730 |
111,704,248 |
-8.82% |
Operating
expenses |
49,048,619 |
42,284,350 |
16.00% |
Workers
welfare fund |
1,126,346 |
1,426,251 |
-21.03% |
Other
charges |
299,550 |
221,386 |
35.31% |
Total
non mark-up / interest expenses |
50,474,515 |
43,931,987 |
14.89% |
Share
of profit of associates |
543,893 |
525,037 |
3.59% |
Profit before credit loss allowance |
51,918,108 |
68,297,298 |
-23.98% |
Credit
loss allowance and write offs - net |
(4,303,670) |
(2,965,620) |
45.12% |
PROFIT BEFORE TAXATION |
56,221,778 |
71,262,918 |
-21.11% |
Taxation |
29,413,943 |
34,769,682 |
-15.40% |
PROFIT AFTER TAXATION |
26,807,835 |
36,493,236 |
-26.54% |
Basic
and Diluted earnings per share (Rupees) |
23.41 |
31.87 |
-26.55% |
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